Company car, employer not declared to hmrc - help!

[hillbilly5]

Hi

Can someone please advise?

 

My husband started work with employer Nov 2006 but initially didn't take up the personal use of company car. After our car was written off in an accident he wrote to his employer asking that they arrange to make the appropriate tax deductions for personal use of the company car. He has just been informed by his employer that no deductions for the company car benefit in kind have been made by them - he has never received a P11D. At least 3 other people within the company have been told that HMRC doesn't have the correct car details for them and so they have hastily been contacting their tax office to correct.

 

They are trying to suggest that its my husbands fault, however from info I have found it seems like the company hasn't been filling in the correct forms/returns to the tax office. As soon as we found out about this my hubby contacted his employer 4 times to ask them for the details that he would need to give the tax office and each time the company has been obstructive and just told him that he needs to sort it out with hmrc. We have ended up having to contact the leasing company direct to get the details and work out the P11D amounts ourselves on the HMRC website.

 

Does anyone have any advice on how to sort this out? I also feel that the company are trying to say that this is misconduct on his part and using it as an excuse to discipline him or get rid of him. Any help out there would be really appreciated.

[honeybee13]

Hello. I replied to the duplicate of this post on the Benefits forum. You may hear from te site team about duplicate posts, as they don't like them.

 

My best, HB

[dragonkeeper]

 

 

 

Hello. I replied to the duplicate of this post on the Benefits forum. You may hear from te site team about duplicate posts, as they don't like them.

 

My best, HB

 

 

 

HB I think hillbilly5 mis-read the advice you gave as in posting a new thread on this forum and just duplicated the post.

 

Easy mistake.

 

 

 

dk

[honeybee13]

Oops, sorry if it was my mistake. I usually say not to copy and paste, forgot this time. Thanks DK.

 

HB

[honeybee13]

Hello again. I found this on HMRC's website. The employer should have sent off a P46 [new one to me too] when your OH took the company car option. And the company should have paid NI on it. It's pretty specific that the employer has to submit this form. There's more on the website, I've posted about the first half of it, hope it helps.

 

HB

 

Reporting company cars on form P46 (Car)

 

If you make a car available to an employee and they can use it for private journeys, you’ll have to report the car benefit to HM Revenue & Customs (HMRC) and pay Class 1A National Insurance contributions (NICs) on it.

The rules for reporting and paying NICs on car benefits are explained in another guide - this guide deals with form P46 (Car). You must complete this form when you first provide an employee with a car which is available for private use, and again when you either provide them with an additional car or withdraw their car without replacing it.

This guide explains which of your employees form P46 (Car) applies to. It also outlines the information you’ll need to have to hand when completing the form, and it tells you when and how to file the form.

On this page:

 

• In what circumstances should a form P46 (Car) be filed?
  
• Which employees and which cars does the form apply to?
  
• Information needed to complete the form
  
• How to complete and file form P46 (Car)
  
• Deadline for filing
  
• More useful links
  

In what circumstances should a form P46 (Car) be filed?

 

You must complete and file the form if any of the following occurs:

 

• you provide an employee or director with a first car, available for private use
  
• you provide an employee or director with an additional car, available for private use
  
• an employee whom you provide with a car becomes chargeable on benefits, either because they start earning at a rate of £8,500 or more per year, or become a director
  
• you withdraw (and don’t replace) a car provided to an employee or director
  

However, from April 2011 you may submit replacement car information, but this must be submitted online.

Top

Which employees and which cars does the form apply to?

 

The requirement to file form P46 (Car) only applies if you provide a car that’s available for private use to:

 

• employees earning at a rate of £8,500 or more per year (including the value of all expenses and benefits you provide to them)
  
• directors, irrespective of their earnings
  

Some company cars are eligible for an exemption from car benefit charges, so you won’t need to complete form P46 (Car) if you provide them. These are:

 

• 'pool’ cars – these are cars used by more than one employee, normally kept on your business premises, and used entirely for business purposes (a limited amount of private use is permitted if it is merely incidental to a business journey)
  
• cars adapted for use by employees with a disability, if the only private use is for ordinary commuting
  
• emergency vehicles used only by on-call employees of the police, fire, fire and rescue, ambulance or paramedic services
  

Guidance about the rules on car benefits

More about what’s included in the £8,500 threshold

Edited November 15, 2010 by honeybee13
hmrc info added.